India’s Energy Scenario & Coal
India is currently among the top three fastest growing economies of the world. As a natural corollary India's energy needs too are fast expanding with its increased industrialization and capacity addition in Power generation. This is where 'Coal' steps in. In India coal is the critical input for major infrastructure industries like Power, Steel and Cement.
Coal is the most dominant energy source in India's energy scenario.
Coal meets around 52% of primary commercial energy needs in India against 29% the world over.
Around 66% of India's power generation is coal based.
India is the 3rd largest coal producing country in the world after China and USA.
Coal India Limited at a glance
Coal India Limited (CIL) as an organized state owned coal mining corporate came into being in November 1975 with the government taking over private coal mines. With a modest production of 79 Million Tonnes (MTs) at the year of its inception CIL today is the single largest coal producer in the world. Operating through 81 mining areas CIL is an apex body with 7 wholly owned coal producing subsidiaries and 1 mine planning and consultancy company spread over 8 provincial states of India. CIL also fully owns a mining company in Mozambique christened as 'Coal India Africana Limitada'. CIL also manages 200 other establishments like workshops, hospitals etc. Further, it also owns 26 technical & management training institutes and 102 Vocational Training Institutes Centres. Indian Institute of Coal Management (IICM) as a state-of-the-art Management Training 'Centre of Excellence' - the largest Corporate Training Institute in India - operates under CIL and conducts multi disciplinary management development programmes.
CIL having fulfilled the financial and other prerequisites was granted the Maharatna recognition in April 2011. It is a privileged status conferred by Government of India to select state owned enterprises in order to empower them to expand their operations and emerge as global giants. So far, the select club has only five members out of 217 Central Public Sector Enterprises in the country.
Unmatched Strategic Relevance
Produces around 81.1% of India's overall coal production
In India where approximately 52% of primary commercial energy is coal dependent, CIL alone meets to the tune of 40% of primary commercial energy requirement
Commands nearly 74% of the Indian coal market
Feeds 82 out of 86 coal based thermal power plants in India
Accounts for 76% of total thermal power generating capacity of the Utility sector
Supplies coal at prices discounted to international prices
Insulates Indian coal consumers against price volatility
Makes the end user industry globally competitive
Thus, plays a key role in "India Growth Story" and making India incorporate globally competitive.
Mission of Coal India Limited
The Mission of Coal India Limited is to produce the planned quantity of coal, efficiently and economically with due regard to safety, conservation and quality.
Corporate Structure and Subsidiary Companies
Coal India is a holding company with seven wholly owned coal producing subsidiary companies and one mine planning & consultancy company. It encompasses the whole gamut of identification of coal reserves, detailed exploration followed by design and implementation and optimizing operations for coal extraction in its mines. The producing companies are:
Eastern Coalfields Limited (ECL), Sanctoria, West Bengal
Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand
Central Coalfields Limited (CCL), Ranchi, Jharkhand
South Eastern Coalfields Limited (SECL), Bilaspur, Chattisgarh
Western Coalfields Limited (WCL), Nagpur, Maharashtra
Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh
Mahanadi Coalfields Limtied (MCL), Sambalpur, Orissa
Coal India Africana Limitada, Mozambique
The consultancy company is Central Mine Planning and Design Institute Limited (CMPDIL), Ranchi, Jharkhand.
North Eastern Coalfields (NEC) a small coal producing unit operating in Margherita, Assam is under direct operational control of CIL.
Coal India's major consumers are Power and Steel sectors. Others include Cement, Fertiliser, Brick Kilns, and small scale industries.
History and Formation of Coal India Limited
With dawn of the Indian independence a greater need for coal production was felt in the First Five Year Plan. In 1951 the Working Party for the coal Industry was set up which included representatives of coal industry, labour unions and government which suggested the amalgamation of small and fragmented producing units. Thus the idea for a nationalized unified coal sector was born. Integrated overall planning in coal mining is a post-independence phenomenon. National Coal Development Corporation was formed with 11 collieries with the task of exploring new coalfields and expediting development of new coal mines.
Factors which led up to Nationalization of Coal Industry in India
Nationalization of coal industry in India in the early seventies was a fall out of two related events. In the first instance it was the oil price shock, which led the country to take up a close scrutiny of its energy options. A Fuel Policy Committee set up for this purpose identified coal as the primary source of commercial energy. Secondly, the much needed investment needed for growth of this sector was not forthcoming with coal mining largely in the hands of private sector. The objectives of Nationalization as conceived by late Mohan Kumaramangalam were; Conservation of the scarce coal resource, particularly coking coal, of the country by
Halting wasteful, selective and slaughter mining.
Planned development of available coal resources.
Improvement in safety standards.
Ensuring adequate investment for optimal utilization consistent with growth needs.
Improving the quality of life of the work force.
Moreover the coal mining which hitherto was with private miners suffered with their lack of interest in scientific methods, unhealthy mining practices etc. The living conditions of miners under private owners were sub-standard.
Formation of Coal India Limited
With the Government's national energy policy the near total national control of coal mines in India took place in two stages in 1970s. The Coking Coal Mines (Emergency Provisions) Act 1971 was promulgated by Government on 16 October 1971 under which except the captive mines of IISCO, TISCO, and DVC, the Government of India took over the management of all 226 coking coal mines and nationalised them on 1 May, 1972. Bharat Coking Coal Limited was thus born. Further by promulgation of Coal Mines (Taking over of Management) Ordinance 1973 on 31 January 1973 the Central Government took over the management of all 711 non-coking coal mines. In the next phase of nationalization these mines were nationalized with effect from 1 May 1973 and a public sector company named Coal Mines Authority Limited (CMAL) was formed to manage these non coking mines.
A formal holding company in the form of Coal India Limited was formed in November 1975 to manage both the companies.
For more Details about History of the Company :https://www.coalindia.in/Company.aspx?tab=0